LOCAL BUSINESS
Car dealerships ready to sell now that Hurricane Ike is gone
08:45 AM CDT on Tuesday, September 23, 2008
Just about everywhere Ryan Orewiler went on the island Monday, people stopped to ask him about buying a new car.
“About 10 people told me they had lost their cars,” he said.
Orewiler, manager of island-based Sand Dollar Autoplex, expects demand for vehicles to zoom after Hurricane Ike.
So do other dealers in the county.
Hundreds of cars and trucks left on the island were damaged by the hurricane.
With so many vehicles flooded by storm surge, dealers around the county are expecting a boost in sales as consumers receive insurance payouts on their cars.
And industry observers say all the government money pumped into Ike-battered counties and overtime many private and public employees will receive during recovery efforts also would boost the disposable income of area consumers.
“Not just in our segment, but retailers in general should see a positive fourth quarter,” said Walter Wainwright, president of the Houston Auto Dealers Association.
“I hate to sit here and talk about selling more things, but in reality, businesses need to sell things to stay alive.”
Before Hurricane Ike, a weak U.S. economy and high gasoline prices put a dent in car sales, which in August declined by 16 percent nationally, according to reports.
But a strong energy sector and Houston’s booming medical center have helped this region’s economy, Wainwright said. Houston area car sales were down by only about 6 percent in August, Wainwright said.
Workers Monday at the massive Sand Dollar dealership, 7802 Broadway, were cleaning out offices, removing water-damaged carpet and preparing for busy weeks ahead.
“We’re going to open as soon as possible,” Orewiler said.
Although the Sand Dollar showrooms and offices aren’t yet open, the dealership is able to sell cars and has technicians prepared to service all makes and models from its 13 franchises.
Orewiler is asking customers to call 832-325-1960 for service and sales information.
Sand Dollar had moved hundreds of its vehicles to a higher ground before the storm, Orewiler said.
Manufacturers are sending the dealership new shipments, and some inventory already is waiting at railheads, he said. None of the cars it plans to sell were damaged by the storm, he said.
There’s no official tally yet of cars damaged by Hurricane Ike. But the numbers likely won’t come close to surpassing vehicles damage by Tropical Storm Allison, which in 2001 caused historic flooding and property destruction in Houston.
Allison damaged 75,000 cars, Wainwright said.
“I don’t think it’s anything like that, but down in your area, it was pretty bad,” Wainwright said.
Mainland dealerships also are expecting an uptick in auto sales.
DeMontrond Gulf Freeway, 3220 Interstate 45, in Texas City, opened last week.
When on Sept. 10 it was apparent Hurricane Ike had taken a northerly turn, putting the upper Gulf Coast in its path, four crews from the dealership drove all night, steering 320 cars to its dealership at Airtex Drive and I-45 in Houston.
Evacuation traffic jams prevented the dealership from getting all its cars to Houston. But it moved more vehicles inside buildings at its Texas City dealership. It also parked some on the side of building, said Ferol Morris, general manager.
Only 30 vehicles at DeMontrond sustained minor damage by debris. Morris said they’re not flooded and he’d sell them at reduced prices.
Already this week, the dealership has sold about 25 cars. That’s below average, but as recovery continues, Morris expects more sales, he said.
“Customers are trying to get their lives back together,” he said. “We expect a big rush from people.”
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Buyer beware
The Better Business Bureau urges used car buyers to be cautious of unscrupulous businesses and individuals who may try to sell storm-damaged cars without revealing the vehicles’ history. To determine if a used car is flood-damaged, auto shoppers should:
•Ask to see the title. Check the date and place of transfer to see whether the car came from a flood-damaged state and if the title is stamped “salvage.”
If you are still suspicious, purchase a vehicle history report, which should tell you whether a car has ever been tagged as “salvage” or “flood damaged” in any state.
•Carefully check the dashboard. Examine all gauges to make sure they are accurate, and there are no signs of water. Look for indications that the dashboard may have been removed.
•Test the lights, windshield wipers, turn signals, cigarette lighter, radio, heater and air conditioner several times to make sure they work. Also, flex some wires under the dash to see if they bend or crack, since wet wires become brittle upon drying.
•Check the trunk, glove compartment, and beneath the seats and dash for signs of mud, rust or water damage. Look for open drainage holes in the bottom of the vehicle.
•Look for discolored, faded or mildewed upholstery and carpeting. Recently shampooed carpets may be cause for concern. Carpeting that has been replaced may fit too loosely or may not match the interior color.
•Look for standing water, mud or grit in the spare tire wheel well or around the engine compartment under the hood.
•Remember to always check out the reliability of the dealer by contacting the Better Business Bureau. Also, before buying any used car, you should get a pre-purchase inspection by a trusted mechanic.
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This story is available through KHOU, Ch. 11's partnership with The Galveston County Daily News. |
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